August 8 2019 @ 9:53 by Steven Hugill
Newcastle-headquartered housebuilder Bellway has posted record sales after a favourable buying environment maintained customer confidence.
The firm’s sales stood at 10,892 in the year to July 31, which was a 5.7 per cent rise on the 10,307 deals it concluded 12 months previously.
The company, founded on Tyneside more than 70 years ago, highlighted the impact of low interest rates and the Government’s Help to Buy scheme for its sales uptick.
Bosses added the demand has helped housing revenue increase, with the figure expected to rise more than eight per cent to nearly £3.2 billion in the same period.
The company also revealed pre-tax profit remains in line with market forecasts of £664 million, with its forward order book steady at 4,878 homes.
However, officials did confirm its operating margin will fall from the 21.5 per cent reported in January as “the margin enhancing benefit of house price inflation continues to diminish.”
Chief executive Jason Honeyman said the business, which has divisional offices in Gateshead and Darlington, was in a good position to continue rolling out its long-term growth plans.
He also revealed its stature had been strengthened by a third consecutive five-star rating from the Home Builders’ Federation.
He said: “We have concluded another successful year, further increasing the supply of much-needed new homes and delivering a record number of housing completions.
“Quality and customer care remain a priority for the business and this has helped us achieve recognition as a five-star homebuilder for the third year in succession.
“Trading conditions remain stable and customer confidence is resilient.
“This, together with a strong forward order book and a healthy balance sheet, ensures we are well placed to continue our long-term growth strategy.”
Bellway has developments across the UK, with its North East estates including Moorfields, in Killingworth; Arcot Manor, in Cramlington; and Byron Heights, on the outskirts of Seaham, County Durham.